Home > Business > Industry

Ultium Cells open Tennessee battery plant after quarter-long delay

Published: 02 Apr. 2024, 15:43

SARAH CHEA
[email protected]

Ultium Cells workers take a photo with the first batch of EV batteries produced at its second plant in Spring Hill, Tennessee. [LG ENERGY SOLUTION]

Ultium Cells, a joint battery venture between LG Energy Solution and General Motors, officially began operations at its second battery plant in Tennessee after a quarter-long delay.

The first batch of battery cells has been shipped to General Motors for the U.S. automaker's latest EVs such as the Cadillac Lyriq, LG Energy Solution said Tuesday.

The Tennessee plant is to have up to 50 gigawatt hours of annual production capacity, enough to make around 600,000 EVs. The plant will create 1,700 new jobs in total.

Ultium Cells had delayed operations amid the slowing sales of EVs globally. The Tennessee plant was initially scheduled to begin operation at the end of 2023.

Ultium Cells has invested nearly 9 trillion won ($6.7 billion) in building three EV plants in North America. The first plant in Ohio began operating in Nov. 2022, while the third factory is set to open next year.

"This second Ultium plant, based on a solid partnership between LG Energy Solution and General Motors, will grow as a key hub of the North American EV market, along with our first and third plant," said Kim Young-deug, head of the Tennessee plant.

Ultium's outset also comes as other battery makers have been harshly impacted as automakers either scrapped or postponed their investment plans.

SK On said last year it would delay operations at its Kentucky plant — a joint venture with Ford — which was originally scheduled to start in 2026.

The two are building a total of three factories in the United States — one in Tennessee and two in Kentucky.

Tesla CEO Elon Musk also hinted at possible delays in construction at a plant in Mexico.

BY SARAH CHEA [[email protected]]